Borealis Infrastructure, OMERS‘ investment arm, said Friday that it has inked an agreement to acquire up to a 31.6 percent stake in Bruce Power B for C$450 million. The seller is Cameco Corp. As a result of this transaction, Borealis now owns a majority stake in Bruce Power. Headquartered in Tiverton, Ontario, Bruce Power operates four nuclear power reactors.
TORONTO, ONTARIO–(Marketwired – Jan. 31, 2014) – Borealis Infrastructure announced today it has signed definitive agreements with Cameco Corporation (“Cameco”) to acquire up to a 31.6% interest in Bruce Power B (“Bruce B”) for $450 million. Bruce B operates four of the eight reactors at the world’s largest nuclear generating facility in Tiverton, Ontario. This sale will increase Borealis’ interest in Bruce Power to 56.1%. Other investors in Bruce Power, TransCanada Corporation, Power Workers’ Union and Society of Energy Professionals, are considering whether to exercise their options related to additional ownership.
“We are very pleased to have the opportunity to increase our ownership in Bruce Power,” said Michael Rolland, President & CEO of Borealis. “Bruce Power is an investment that continues to fit with our long-term strategy to invest in core, large-scale and high-quality infrastructure assets. It also plays a critical role in meeting the supply needs of the province of Ontario.”
Bruce Power operates the world’s largest nuclear facility that generated 30% of Ontario’s electricity in 2013. Bruce Power is a key contributor to maintaining a reliable and affordable supply of electricity for Ontario families and businesses and is essential to meeting the province’s goal of phasing out coal-fired electricity.
The recently released Long Term Energy Plan (LTEP) commits to sustain Bruce Power’s role in Ontario’s energy future providing up to 6,300 megawatts of capacity. The focus now is to turn this policy position into action and Borealis is committed to supporting Bruce Power towards this goal.
Bruce Power is Canada’s largest public-private partnership. While the assets remain owned by the Province, Bruce Power safely operates the facility and provides low-cost electricity to Ontario families and businesses under contract with the Ontario Power Authority (OPA). All nuclear facilities in Canada, including Bruce Power, are federally regulated by the Canadian Nuclear Safety Commission (CNSC).
About Borealis Infrastructure
Borealis is a leader in direct infrastructure investing with over a decade of investment experience. Borealis manages approximately $10 billion in OMERS equity capital through investments in a diversified portfolio of large-scale infrastructure assets exhibiting stability and strong cash flows, in sectors including energy, transportation and government-regulated services. It has offices in Toronto, London and New York. Borealis is the infrastructure investment arm of OMERS, one of Canada’s largest pension funds with net assets of more than $60 billion and an AAA credit rating. For more information please visit: www.borealis.ca.
OMERS is one of Canada’s largest pension funds with over $60 billion in net assets. It provides first-class pension administration and innovative products and services to over 430,000 members. Approximately one in every 20 employees working in the province of Ontario is an OMERS member. Through the OMERS Worldwide brand, our team of investment professionals uses a direct drive, active management investment strategy to invest in public and private market assets, including publicly-traded equities, fixed-income, infrastructure, private equity and real estate. For more information, please visit: www.omersworldwide.com.